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Nirenstein, Horowitz & Associates
43 Woodland St., Suite 520, Hartford, CT 06105
(860) 548-1000
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President Proposes Estate Tax Increase We currently have a $5.25 million unified exclusion that applies to your estate and the taxable gifts that you have given throughout your life. The maximum rate of the estate tax and the gift tax at the present time is 40%. These parameters were supposedly permanently put into place after the passing of the American Taxpayer Relief Act of 2012 at the end of last year. However, estate planning attorneys cautioned people to keep a close eye on the matter because nothing is really permanent when it comes to legislation because changes can always take place. We are now hearing that possible changes may be afoot. In the proposed 2014 Obama budget there is an increase to the estate tax. Under the terms of this proposal in 2018 the estate tax parameters would revert back to their 2009 levels. This would result in a $3.5 million exclusion for the estate tax, a $1 million gift tax exclusion, and a 45% maximum rate. We will see if this proposed hike does in fact become reality. The estate tax i
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What Is Your Net Worth? Financial planning attorneys will advise you to remain apprised of your net worth at all times. There are a number of different reasons for this, and one of them is the fact that you need to know exactly where you are in the present to determine if you are on the proper course for retirement. If you develop a net worth statement you will be able to use this as a guidepost regarding your long-term financial trajectory. Another reason why it is a good idea to know exactly what you have is the fact that the estate tax may or may not be a very big factor when you are planning your estate. Here in Connecticut we have a state estate tax, and there is also the federal estate tax to contend with. Whether or not you are exposed will be determined by your net worth as it compares to the estate tax exclusion that is in place at the time of your death. This exclusion is not something that always stays the same. As a result you must consult with your estate planning attorney often to make sure tha
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Have them in circles
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Inheritance Tax Vs. Estate Tax A lot of people think that an estate tax and an inheritance tax are one and the same, but in fact they are two different things and we would like to clear up the distinctions here. The estate tax is levied on the entirety of the estate before it is passed along to the heirs. It should be noted that there is a federal estate tax which is applicable in all 50 states. At the present time the maximum rate of the tax is 35% and the exemption amount is $5.12 million. But in addition to this some states levy an estate tax on the state level, and this would be imposed on top of the federal tax. Connecticut does in fact have a state estate tax, and the exemption amount is $2 million in 2012 with a top rate of 12%. On the other hand, an inheritance tax is imposed on the amount that the heir to an estate is actually receiving. So after all the estate taxes have been paid there is yet another tax that must be paid by the heirs to the estate on the inheritances that they receive. It should be note
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The Estate of Ed Koch The former mayor of the city of New York Ed Koch died on February 1st at the age of 88. He actually served three terms as the mayor of the city after serving as a member of the United States House of Representatives. More often than not you can learn something about estate planning when you examine the estates of famous individuals who passed away. In the case of Ed Koch you see how your financial legacy can be ravaged by estate taxes. The federal estate tax is obviously applicable in all 50 states. The current federal estate tax exclusion is $5.25 million, and the maximum rate is 40%. Some states have an estate tax on the state level, and in fact we have a state estate tax right here in Connecticut. There is an estate tax in New York as well, and the 2013 exclusion amount is $1 million; the maximum rate is 16%. People who are in politics are often referred to as public servants. As mayor the highest annual salary that Koch earned was $130,000. Though that may sound high to some, it i
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Powerball Winner & Estate Taxes The Powerball lottery is quite a phenomenon in the United States. Ordinary people have the opportunity to win extraordinary sums of money, even though the odds are extremely slim. Many of us have imagined winning this type of jackpot. We formulate all kinds of plans regarding what we would do if we were to come into this kind of money. One thing that few people would think about would be the estate planning implications. Recently a record-setting Powerball jackpot of over $590 million was won. This figure is what the winner gets if he or she accepts annuity payments over 30 years. The lump sum payout is almost $371 million. After federal income tax has been deducted the remainder would be $278 million. When you re talking about this kind of money it can all seem like a fantasy, but if you take the lump sum after taxes have been taken out you are left with less than half of the supposed value of the jackpot. Then you have to consider the estate tax. If you were to get into a fatal auto
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We are Living Trust and Estate Planning attorneys with offices in Greater Hartford and Westport Connecticut.  Our mission is to provide residents of Connecticut and the surrounding areas with quality estate planning resources.

Additional Locations:

191 Post Road West
Westport, CT 06880
Phone: 203-221-2617
Hours
Monday8:00 am–5:00 pm
Tuesday8:00 am–5:00 pm
Wednesday8:00 am–5:00 pm
Thursday8:00 am–5:00 pm
Friday8:00 am–5:00 pm
Contact info
Phone
(860) 548-1000
Email
Address
43 Woodland St., Suite 520, Hartford, CT 06105
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